The Role of Location on Exploitation of Agricultural Businesses in Mazandaran province (Case Study: Agricultural Processing Industry)

Authors

Agricultural Economics, Sari Agricultural Sciences and Natural Resources University, Mazandaran, Iran

Abstract

Choosing the appropriate site is important in the construction of units such as agricultural processing industries. In this study, we try to determine the factors affecting on the exploitation of the agricultural processing industries and measure the share of location as one of the important issues in locating research. The 2572 data were collected from the Agricultural Jihad Organization of Mazandaran province. The two-level Logit model was used as the estimation method. The results showed that the variables of cooperative ownership, planned capacity, unit area, industrial parks, livestock and Horticultural activities have negative effect on the exploitation, and the variables of the capital and fishery activity have positive effect on the exploitation. Also, construction site explains on average 1.2% of the observed deviation, which is not explained by independent variables in the model. The share of the worst and the best location in terms of spatial characteristics are 0.2 and 4.6%. The low share of the site in exploitation can be due to the right choice of location by investors or the proximity of the cities of Mazandaran province. Therefore, it is necessary to improve other factors affecting on the construction of the agricultural processing industries in the Mazandaran.
 

Keywords